Earlier today, Valleywag reported that participation in Facebook’s developer forum is down, most likely due to Facebook’s new restrictions on Facebook-application spam. Valleywag praised these new rules, saying Facebook won’t miss its lousiest apps.
Now an executive from a major, well-funded widgetmaker says:
Your post misses the point. FB’s valuation is driven by the perception it can serve as a platform (or launching pad) for derivative businesses. Without that perception, FB is a $3-5 B company. Period. When developers lose enthusiasm for the “platform,” every FB employee has their net worth cut by 67%.
When Zuck announced to the ad industry last winter that his company was ushering in a new day, I knew Facebook was in trouble. It seems to me that Zuck and Co. are living inside a gigantic bubble, a bubble so big it doesn’t appear to be a bubble at all. Rather it’s simply the rarefied atmosphere of a well-endowed Silicon Valley startup. For now.